Kenya approves JPMorgan office as CEO preps Africa visit
Kenya approves JPMorgan office as CEO preps Africa visit
US banking conglomerate JPMorgan Chase has received the green light to establish a representative office in Kenya just days before the CEO of the financial institution starts a tour in Africa aiming to firm up the lender's expansion strategy on the continent.
The approval by CBK comes before JPMorgan CEO Jamie Dimon visits East Africa's biggest economy Kenya as well as Africa's largest economy Nigeria. His visit will also see Jamie go to the continent's most advanced economy South Africa, and possibly Ivory Coast according to Reuters.
In his tour of key economies in the continent, Jamie is expected to meet senior government officials, policymakers, top bankers, and clients.
"This authority is granted pursuant to Section 43 of the Banking Act and follows the fulfillment, by JPMorgan Chase Bank N.A., of the stipulated authorization requirements," the Central Bank said in an update on Monday.
The banking industry regulator explained that a representative office of foreign banks in Kenya serves basically as a marketing and liaison centre, serving the parent company and its affiliates.
Representative offices "are not permitted to undertake banking business," the Central Bank note clarified.
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"JPMorgan Chase Bank N.A Representative Office Kenya will contribute to the diversity of Kenya's financial sector and catalyze trade and investments. Additionally, the authorization of the representative office affirms Kenya's standing as a premier financial services hub," noted CBK.
With a presence in over 60 countries, JPMorgan Chase has been keen on tapping emerging business opportunities in Kenya and across Africa.
According to Reuters, JPMorgan Chase announced in 2018 that it is considering entering Kenya and Ghana markets. In February this year, President William Ruto noted that JPMorgan had committed to opening a representative office in Nairobi.
Globally, with increased focus on investment and wealth management opportunities in Africa, banking conglomerates are reaching out, seeking to provide a range of services such as offshore investment products.
What's more, they are also positioning themselves to provide governments with credit facilities besides facilitating corporate transactions for big enterprises seeking to scale.
